As we’re coming up on the 100th anniversary of the establishment of Federal Reserve, one thing has become abundantly clear– these guys are horrible at their jobs.
According to the popular lie, the Federal Reserve was supposed to have been established to smooth out the economic cycle, thus preventing booms, busts, recessions, and depressions.
It hasn’t really worked out that way.
In the 100 years prior to the establishment of the Federal Reserve, there were 18 distinct recessions or depressions:
1815, 1822, 1825, 1828, 1833, 1836, 1839, 1845, 1847, 1853, 1860, 1865, 1869, 1873, 1887, 1890, 1899, and 1902.
Since the establishment of the Federal Reserve, there have been 18 recessions or depressions:
1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.
So in other words, the economy experienced just as many recessions with the ‘expert’ management of the Federal Reserve as without it.
And this doesn’t even begin to capture all the absurd panics (the S&L scare), bailouts (Long-Term Capital Management), and ridiculous asset bubbles that they’ve created.
Hardly an impressive enough track record to justify conjuring trillions of dollars out of thin air, and awarding nearly totalitarian control of the money supply and economy to a tiny banking elite… wouldn’t you say?
I'd argue they are actually quite good at their jobs; that is, their real jobs, which is to funnel as much funny money to the banking houses of Kuhn Loeb Morgan Rothschild Lazard and whatever other reptilian vampires are pulling the strings...
If the Fed Reserve had any interest in keeping the US dollar as a reserve currency to keep up its atrocities it would raise interest rates to 12%
True but then how would the gubbmint pay interest?
Yo, where and when is the Zero Hedge 100 year Fed anniversary party?
Are you sending invites, or what?
What I want is the time to recover from the recession for each of those two lists.
Yeah, it's at the White house.
So drive in, ignore the first and second security guard and if you make it to the door, the password to get in is : "ALAH ALAH ALAH"
the doorbell is busted so you'll need to hit on the door real hard.
And there's a dresscode!!! Don't forget it!!! We'll all be dressed in a white sheet and with glued black beards on!
For sure, DrDinkus!
Immaculate hypocrisy:
http://www.zerohedge.com/news/2012-10-10/guest-post-feds-sole-purpose-keeping-banks-afloat-g-edward-griffin
“The Fed’s sole purpose: keeping the banks afloat.”
http://www.youtube.com/watch?&v=_WrMWK-FJzU
"Legalized Plunder of the American People"
--- G. Edward Griffin
THE FEDERAL RESERVE BOARD IS A BANKING CARTEL.
NONE of the stated goals of the Federal Reserve system have been met, while ALL of the real goals of that banking cartel have been achieved.
The Federal Reserve did a great job if you ask their owners.
100 More Years would be the cheer overheard at their shareholders meeting.
The Fed's job is to convince the sheeple the helicopters are coming to save them, thereby delaying the result of using the equation as long as possible.
I hear helicopters. But I don't think it's Bernanke.
No helicopters in my neck of the woods, even if there were, it would be limited in duration and eventually the Fed would be overcome. The Fed is doing a great job at postponing the eventually outcome from use of the equation ie collapse, measured by the size of this system.... the Fed has been more successful than the prior versions. The amount of walking unfunded liabilities that will have to be liquidated this time will dwarf the 120+ million that were liquidated last time.
"The matrix is older than you know. I prefer counting from the emergence of one integral anomaly to the emergence of the next, in which case this is the sixth version." - The Architect
Just as long as the black ropes don't decend in your backyard, you're ok.
It has nothing to do with my backyard. You do not see the forest for the trees.
Either way the Fed has been highly successful at it's JOB, whether it should have a job is another point.... but it will have this same general result each time you use the equation. Not much I can do about it but point out the obvious.
Dollar tanking with more QE talk. Countries gotta think about getting out of the US dollar.
There is no hiding this time.
<----- end the fed
<----- Janet Yellen naked
<----- All of the above!
Congress says they're doing a fine job
Only Reuben Fine did a truly fine job. His favorite game:
http://www.chessgames.com/perl/chessgame?gid=1043868
Fed is good at job creation .... for jobs at the FED for know nothings, do nothings, with the right connections and having been to the right schools! It's the one mandate that has worked consistently.
Who will be the next Volker to fix the problems created by Greenspan and Bernanke?
But it always could have been worse, right? We cannot judge our leaders failure based upon our expectations but only against the worst possible outcome imaginable, and on that front they are always "winning".
Yes, but think of the recessions and depressions we would have had if the Fed didn't exist for the last 100 years.
Sorry, I'm trying out this new Obamalogic...it doesn't feel right, but I'm trying to give it a chance.
ps: love the graphic!
Will this work for the Fed?
https://www.ic3.gov/default.aspx
You are confusing me with facts.
If theft and murder is any guide the FedRes has been a crowning success. Hat's off to these criminals, at least until it's "heads off."
Fractals, Physics & Police Power
Herd the critters into an urban prison, where they are to compete to avoid work; rent them time in the countryside turned into Disneyland; and have them vote on whether or not I have to participate. Go F yourself.
That nail sticking up is a plunger. Let’s watch the Yellen A-Team hit it with a hammer, again and again and again, until it gets a surprise, never saw it coming.
Fractals, physics and financial engineering are all quite interesting, but you do not need their language to understand the law of diminishing returns. Congress, and every other government, promises its middle class a higher return at less risk, with economic slavery, lower return on greater risk, for someone else, embedded in ‘free’ trade agreements, until it can’t, when government begins to boil in its own soup, in exchange for middle class compliance, which becomes law, via the miracle of democracy, for everyone that cannot escape its gravity, money issued for the purpose.
Social Security, Obamacare, and all the rest of the financially interdependent mechanizations, have reached the limit of diminishing returns. Because ponzi participation is decelerating, benefit recipients are swamping ignorant contributors, and Wall Street was kind enough to globalize the process, temporarily hiding all the financial losses off-book, until free cash became insufficient to serve the interest, which is what you are observing.
To live one more day, Congress is cutting out beneficiaries, hunting down contributors with increasing capital control and inflating taxation with real estate inflation, more of the same. The problem, for the participants, is that the momentum of capital control is hitting capital, an expected or unexpected consequence depending upon perspective. When the reactor turns into a bomb depends upon your location, your perception of time.
The ‘post-industrial’ tourist/service economy is nothing new; it’s feudalism, trotted out and failed every time for centuries. Ever been to Europe? Are you watching Canada? Property is removed from circulation, increasing rent relative to the middle class, which suddenly finds itself defined as labor, slowly boiling the frog that has been bred to live in the pan. The Nazis were simply those that did whatever was necessary to be boiled last, step by deliberative expedient step, back into the past.
From labor’s perspective, empire operation is quite simple. To the extent government lives within the means you have allotted, work publicly and accept its taxation. To the extent it does not, work privately and bank the result, in your own bank. Once the bombs start exploding, someone has to rebuild the economy. If you want to get a head start, design the bombs, AKs, debt instruments of destruction, or whatever else is appropriate to the time.
If you throw a match into an open tank of fuel, you get fire. If you ignite a gas under pressure, you get an explosion. If you connect the explosion to a transmission mechanism, you get propulsion, if you know what I mean. I can build any kind of bomb you like, with financial words, programming code or kinetic devices; just ask the old-timers in the US Navy.
The price of oil is going up in a depression for the same reason trailer park rent is going up, herd behavior.
So, the morons are rolling out their pot cartels for public consumption, and you are prohibited from growing your own by the same law, adding yet another layer of middlemen layers, and you expect quality and price not to head in opposite direction, by the law of diminishing returns? The answer is simple; don’t buy their crappy pot. Get out of the way and the empire inflates itself into implosion every time.
My tobacco will always be worth more than their pot to my customers, because my customers are not my enemy. From the corporate perspective, the customer is the enemy; the product is just a delivery mechanism, to the back of the bankruptcy line. Don’t bother telling me that legacy capital history will not repeat itself again. I’ll watch from a distance, when I have nothing better to do, which isn’t often.
You don’t need to break the law to break the buck. False positives follow false assumptions like night follows day. Life has survived every contrived market so far; no need to participate, for or against. There is always a bigger fulcrum to catch the collapsing fulcrums above. It’s a built-in function of time. Program accordingly, but don’t bother to program my job, unless you want to program yourself inside a bomb. Anytime you want my job, you can have it, but you might want to figure out what the H it is that I do.
Write a program, any program. Employ a little algebra and geometry, multiplication and division, to the 1s and 0s, and write another program. What happens to the language? Where does language come from? Do you really think geometry is the frontier of space? Don’t assume a dimension in perpetuity and expect a happy result.
Labor works for the old man, not a piece of paper, but enact as many laws to the contrary as you like. The curtain is blue, and it’s called State Police Power. But you have a purely community/municipal interest in ignoring stupid, and an inalienable right to private self identity.
Passive investment, property and the income derived there from, are conventions. Try to keep them in perspective. Breeding humans as their derivatives produces automatons (every State completely defined) with associated observers prism, and you cannot reprogram automatons, with automatons, in groups. You have a lot of canaries in a collapsing coal mine, and no labor.
To protect and serve what? Do you really want the false assumptions of NSA programmers to be your boss? Labor has much better things to do than argue with an automaton banker about the definition of labor.
My crime – I did not honor the State’s paper. The collective told me that I had to get ‘certified’ to continue operating my crane, writing code, consulting Navy and fixing elevators, and had to accept its unilateral divorce decrees, by law. Funny, I told it to F off every time, and it expected a different result, every time, seeking to limit the scope of work with an army of illegitimate entitlement license make-workers, collectivized into self-exempted cults for the purpose.
Let me get this right. I’m suppose to listen to a majority of voters, listening to voices in their heads, echoes of the past, in a chain of command, listening to voices in its head, tell me how to do my job, to chase my tail round and round, expecting something other than gravity. I think not.
The State is not, nor will it ever be, competent to be my boss. Funny, how capital and middle class can’t do your job, but demands to be your boss, and calls it democracy, always with the latest and greatest version of Family Law, peer pressure extortion with no due process, to catch any leakage. It doesn’t want to issue me a license. No problem. I’ll blow up its industry, no magic required, just by looking at it, simple physics, the law of diminishing returns.
Labor is far from dead; it just moved forward, leaving the old economy to collapse. Keep your bubble gum, tie wire and duct tape. We don’t need it. When you are ready to stop throwing money down a certifiably insane rat hole, like BART…”If there is any lesson learned, it is that this can never happen [again].” (Newsome, another operator in training)
Not sure what your deal is, but hang in there bro. There are a few rays of sunshine here and there.
Are you Ted Kaczynski?
http://en.wikipedia.org/wiki/Ted_Kaczynski
This country will end before the fed is abolished. The parasite has grown quite large and bold and will continue until it kills off its host. Eventually it move on to another host and the cycle will continue.
— Rothschild Brothers of London, 1863
Cardinal rule of banking: Bankers are always stealing something and they've had 100's of years to perfect and masquerade it.....
http://www.youtube.com/watch?v=gBzJGckMYO4
2nd to ZeroHedge's dismal track record. doh!
Federal Reserve was supposed to have been established to smooth out the economic cycle, thus preventing booms, busts, recessions, and depressions
To any one who passed basic macro theory (the real kind, not the sort they "teach" at Princeton/MIT/et al) this is hilarious! Business depressions are caused by a cross industry cluster of business errors, any small subset of which may naturally occur in the absence of an institution like the Fed, but never all together as this confounds the very concept of entrepenuerial forecasting.
This line is just as intellectually bizarre in the 21st century as "the world is flat" would have been in the 18th or 19th.
"Please, at least leave us alone in our living rooms. Let me have my toaster, my tv, my steel-belted radials and I won't say anything. Just leave us alone."
https://www.youtube.com/watch?v=WGiX5tbLKiY
back in the day if you failed you were punished...now we REWARD FAILURE!
Of course they are horrible at their jobs, but by definition, all central planners fail at what they do.
Of course, that's if you define 'failure' in terms of their nominal, public goals. Insofar as their real job is to protect the banking cartel, they've done a pretty good job. Ironically, they will eventually even fail at that.
Fools and their currency are easily separated. For a century, fools have craved for other noble elite ueberfools to think for, protect, print money and govern them. The fools' hope is their folly.
Two Words that will END THE FED
Neil Keenan. Look it up.
A link from the search:http://www.neilkeenan.net/?subscribe=success#blog_subscription-2
From the link:
This was gold that had been looted from the banks of Austria, Belgium, and Czechoslovakia or melted down from teeth fillings, eyeglass frames, and wedding rings of millions of murdered Jews.
This is nonsense ... right up there with the lampshades and soap.
Karen Hudes too...So that's four words. ;)
If the existence of the FED is really in question, start a war. A real war. A huge war. Let the chips fall and hope for the best.
Disclaimer: Long Gold Silver and farmland.
The Fed deserves a LOT of credit for doing these warnings.
http://www.showrealhist.com/3warnsRD.html
The rest of the financial sector is substantially dishonestER, by comparison.
Since when did anyone think they were working for the United States of America.
Anyhow they are excellent at their job which is to siphon off as much money from everyone else and put into their pockets.
It has gotten to the point that only the military can stop them.
their job could be done by a nutless monkey. A NUTLESS MONKEY!!!
But at least now, we have more inflation! Oh, that's NOT a good thing! :(
It's not easy devaluing a currency and stealing the wealth of millions to keep their degenerate banking buddies in the life style they are custom to while trying to convince the world that's not what they are doing at all.
Basically... central banks were put in place by lying greedy bastards for lying greedy bastards.
Don't think I missed anything.
Definitely not a fan of the Fed here, but in order for that data to be of any value whatsoever, you need to list which dates were depressions and which were recessions and the depth of each. Wealth transfer still isn't justified even if the Fed did have a better track record, but if you're going to use statistics, don't act like a government agency and tell half the story.
And now they're going to let a woman drive, which will almost certainly turn out similar to this: http://www.youtube.com/watch?v=CId-uAr34rg
ALSO - in the 100 years before the FED, there were no Great Depressions, no Great Recessions, and no World Wars
Some things are real crazy, but some are just spot on...
Karen Hudes: US Dollar and Gold - We Are Losing Our Credit Rating.
Karen Hudes is a former lawyer at the World Bank and a whistleblower. She continues her exposure of the fraudulent central bank system with FIAT currencies issued by the private banks like FED and based on debt. US is losing its credit rating now and it is the game changer. She called it a "grand scam and the Ponzi scheme" and among participants all the same well known faces: FED, BIS and other Central and Investment banks. Today's action in Gold is showing that you can not manipulate the Gold market all the time and that we are very close to the breaking point in the status quo. At least Gold is confirming its breakout from the downtrend line today. http://sufiy.blogspot.co.uk/2013/10/karen-hudes-us-dollar-and-gold-we-are.html#
http://www.tfmetalsreport.com/podcast/5114/jim-willie-discusses-bond-bubble
http://media.tfmetalsreport.com/audio/WillieOctober1.mp3
http://www.tfmetalsreport.com/podcast/5124/jim-willie-discusses-bon-bubb...
http://media.tfmetalsreport.com/audio/WillieOctober2.mp3
I don't believe the Federal Reserve™ are bad at their job -they succeeded quite well in making a significant amount of money for the ruling class.